Why invest in a hotel resort?Resort Unit Investments, when selected carefully, can be the perfect ‘passive’ investment – unlike traditional buy-to-lets, you won’t have to get involved with red tape and form-filling, dripping taps and leaky guttering and phone calls from tenants on Christmas Day morning! You can buy in at a low entry point…these investments are often SIPPable – you can put them in your pension and enjoy all the tax breaks, especially if you are a 40% taxpayer!Most hotel room investments come with a guaranteed rental return of 10% or so for the first couple of years – after that you could see returns at an even higher rate by enjoying up to 50% of the hotel’s earnings from your room – without having to lift a finger to get it!Benefits of hotel room investments The managed, turnkey nature of hotel investments allows investors to have a hands off approach to the investment. The hotel company will manage and market the room on behalf of the investor, because it is also in their interest to increase revenue. The investor benefits from industry professionals managing and marketing the hotel unit for them.Also, investors are less exposed to long term vacancy as they would be in a traditional Buy to Let property investment which can lie empty for months at a time.An additional benefit to UK investors is that hotel room investment is considered as commercial and not residential so it is possible to place the investment in a Self Invested Personal Pension (SIPP), which allows for tax free capital growth and earnings.If the investor chooses to place their investment in a SIPP then they are unable to use the hotel room themselves unless they pay a market rate for use of the room, otherwise they would face investigation from the Inland Revenue and Customs.Resort investment incorporating Hotel rooms as a pension investment.Hotel rooms are classed as commercial assets and are one of the very few property types allowed to be purchased directly by a pension/SIPP.Investors can purchase a room through a Self Invested Personal Pension (SIPP) either individually or in a group and take advantage of the tax relief available upon the income and capital growth.